Q&A: Credit Checks, Retirement Plans & More

With so many things to worry about in life, you shouldn't have to stress when it comes to managing your money. In this column, I've answered some of the most popular personal finance queries you've sent in.

So, if you wonder about checking your credit, saving money when you don't make much, taking an early retirement, and the 101 on life insurance, read on for some easy answers to seemingly complicated questions.

How do I check my credit?

It's important to know what your credit rating is because it's the ultimate method for determining if you can borrow money, and how much you'll have to pay when you do. Experts suggest that you check your credit about every six months, so that you can stay on top of any "dings" that may inaccurately appear on your record. Check your record online with any number of reporting agencies. It's free and shouldn't take more than a few minutes.

How can I save money, if I don't make a lot?

It may not be as sexy as stocks or bonds, but a savings account is key to financial success. You can choose from three types of accounts, depending on how much money you have to put in:

Each one offers slightly higher interest rates than the next, but each requires a greater minimum balance.

Whether you're saving for a particular purchase, or keeping money in the bank for a rainy day, it's a good idea to put at least some of your paycheck away. Interests rates aren't anything to write home about these days, so you won't make a ton of money by just sitting on it, but unlike stocks, there is no risk of losing it, either. Even if you can't afford much, you could probably find a way to put at least $20 a month away. Have one less beer at the bar, or skip one late-night pizza a month and you'll get there in no time.

Yes, it may sound less than glamorous, but here's what a savings account can do for you. Even if you're just starting out, think about your savings account as a means to an end. Maybe you want to buy a house someday. It's a lot easier to build up that down payment 10 years in advance than 10 months in advance. Find an online calculator that can help you figure out how much you'll need to put away to get a certain sum down the road.

That's assuming all goes well.

But what if the worst should happen? Suppose you get sick or lose your job. A lot of people smooth over the rough patches in their lives by using credit cards, which is fine, but they're left with a lot of debt at the end of the day. Having a savings account, no matter how small, is like having insurance that you can dip into, should the need arise.

Saving for retirement today and the deal on differing life insurance policies...